CAITONG SECURITIES·2026-03-02 11:58Core Insights - The report emphasizes the shift towards "HALO trading" in both US and A-share markets, moving away from high-valuation tech stocks to lower-valuation, asset-heavy sectors due to concerns over tech valuations and potential AI disruptions [2][5][6] - The report identifies "HALO assets" as a strategic choice for long-term investors who prefer stability over chasing tech stocks, highlighting the importance of selecting high-quality investments within this category [6][7] - It suggests two investment strategies: offensive and defensive HALO approaches, allowing investors to diversify their portfolios while managing risk [6][7] A-share HALO Trading - A-share HALO assets are characterized by their cyclical, stable, and heavy manufacturing nature, which become attractive when their valuation advantages are clear [6] - The report advises careful selection within HALO investments, focusing on those with strong cash flows and solid long-term barriers to entry [6] Fund Grouping Perspective - The report outlines two strategies for fund grouping: defensive selections with low correlation to mainline stocks and offensive selections targeting sectors with potential growth catalysts [6] - Historical data indicates that a three-year investment horizon can yield significant excess returns when following these strategies [6] Configuration Directions - Offensive HALO investments include sectors benefiting from price increases and international expansion, such as agricultural chemicals, high-end manufacturing, and brokerage firms [7] - Defensive HALO investments focus on industries with low holdings, such as coal and construction, and sectors with low correlation to technology, like petrochemicals [7] Top Stock Picks - The report lists ten recommended stocks, including TCL Electronics, ShouLiu Hotel, Anjui Food, Muyuan Foods, Qibin Group, New Town Holdings, COSCO Shipping Energy, Daimai Co., Chipone Technology, and Lenovo Group, highlighting their potential for growth [3][4]